Ian James Hudson has been sentenced to four years’ imprisonment for fraudulently trading as a financial adviser.
At Southwark Crown Court today (July 26), Judge Tomlinson sentenced Hudson for one count of fraudulent trading, with two additional terms of 14 months reflecting a breach of section 19 of the Financial Services and Markets Act 2000.
These will run concurrently following his earlier guilty plea.
His sentence follows charges brought by the FCA for running a business, Richmond Associates, for fraudulent purposes and carrying out regulated activity when not authorised or exempt.
According to the FCA, between January 1, 2008 and July 31, 2019, Hudson advised on regulated mortgages, pensions and other investments and purported to invest significant deposits received by him from clients on their behalf.
At no point during this time did he have the authorisation to do so.
While Hudson told clients that the money they deposited with his business, Richmond Associates, would be invested in various financial vehicles or otherwise put to specific uses, this was not always the case.
Instead he used the deposits to re-pay existing clients, to make payments to other individuals, or to fund his own lifestyle.
In total, approximately £2m was deposited by Hudson’s clients.
Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Mr Hudson’s defrauding was calculated and persistent over a number of years, preying on victims who believed he was a financial adviser and trusted friend when he was neither of these things.
“We remind investors to check the FCA’s register of authorised person to ensure any financial adviser is authorised to provide financial advice by the FCA.”
The FCA has now started confiscation proceedings to compensate the victims.
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